Federal tobacco bonds.
Flat 3%. Enter your amount.

The bond a manufacturer of tobacco products files with the TTB before commencing business under 27 CFR 40.66, on TTB F 5200.29 (a blanket bond on 5200.25/26 covers multiple factories). It secures the federal tobacco excise tax. We issue it at a flat 3% — enter the penal sum TTB requires.

Filed with the TTB under 27 CFR part 40 before commencing business as a tobacco products manufacturer
Secures the federal excise tax on tobacco products you manufacture and remove
Flat 3%, no credit pull on standard amounts — enter the required penal sum and the premium updates
Flat 3%of your penal sum$275minimum premiumA-ratedA.M. Best carriers
Trusted by industry leaders
NYCEDC
BDG
Capital
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Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Apply to filed in one sitting.

No underwriting queue for a standard tobacco bond — enter your penal sum, pay, and file with the TTB. Here is the whole thing:

TODAY · 5 MINUTES

Apply online

Your factory details, the penal sum TTB requires, and the effective date — that is the entire application.

INSTANTLY, USUALLY

Issued on the spot

Standard amounts issue as soon as you pay. Larger penal sums may get a quick soft-pull review, which never affects your credit score.

SAME DAY

File with the TTB

Submit the executed bond (TTB F 5200.29) with your permit application — you may not commence business until TTB approves it. Wet-ink originals mailed when needed.

The whole pricing page.

Penal sum × 3% = your premium, one-time per term, $275 minimum. Enter the figure TTB requires and the premium updates.

$1,000 bond
$275
$20,000 bond
$600
$100,000 bond
$3,000
About this bond

What it is and who needs it.

What the tobacco bond actually covers

A manufacturer of tobacco products must file a bond with the TTB before commencing business, in connection with the permit application, under 27 CFR 40.66. The bond secures the federal excise tax on the tobacco products the manufacturer makes and removes under 26 U.S.C. Chapter 52. The standard form is TTB F 5200.29; a manufacturer operating more than one factory may file a blanket bond on TTB F 5200.25 or 5200.26 instead of separate bonds.

TTB sets the penal sum based on the maximum tax that could be unpaid at one time given your expected production and removals. The bond stands behind that liability, guaranteeing the manufacturer faithfully follows the law and pays the tax, interest, and penalties.

An important caveat: since January 1, 2017, 26 U.S.C. 5551(d) extends a similar bond exemption to tobacco manufacturers who reasonably expect to owe no more than $50,000 in tobacco excise tax for the year (and owed no more than that the prior year). Many small manufacturers may be exempt. If TTB has asked you for a bond, or you fall outside that exemption, we issue it at a flat 3%.

27 CFR 40.66 / 26 U.S.C. 5551(d)Under 27 CFR 40.66, a manufacturer of tobacco products must file a bond (TTB F 5200.29, or a blanket bond on 5200.25/26 for multiple factories) before commencing business, securing the federal tobacco excise tax under 26 U.S.C. Chapter 52. Since January 1, 2017, 26 U.S.C. 5551(d) exempts manufacturers reasonably expecting not more than $50,000 in excise tax for the year (and liable for not more than that the prior year). Confirm whether a bond is required, and the penal sum, with TTB.

You need this bond if you are

Applying for a tobacco products manufacturer permit that TTB requires to be bonded under 27 CFR 40.66
Outside the small-manufacturer exemption — expecting more than $50,000 a year in tobacco excise tax
Operating multiple factories under a single blanket bond on TTB F 5200.25 or 5200.26
Replacing a superseding bond or restoring coverage after a surety non-renewed

Five minutes, issued on the spot.

Enter the penal sum TTB requires on TTB F 5200.29 — the executed bond is generated on payment, ready to file with your permit application.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the federal tobacco bond? +
The premium is a flat 3% of the penal sum, with a $275 minimum. TTB sets the penal sum based on the maximum tobacco excise tax that could be unpaid at one time given your production. Enter that figure and the quote updates.
Do I even need a tobacco bond anymore? +
Maybe not. Since January 1, 2017, 26 U.S.C. 5551(d) exempts manufacturers who reasonably expect to owe no more than $50,000 in tobacco excise tax for the year (and owed no more than that the prior year). If TTB has asked you for a bond, or you fall outside that exemption, we issue it.
When does it need to be in place? +
Before you commence business. Under 27 CFR 40.66 the bond is filed in connection with your permit application, and you may not begin manufacturing until TTB approves it. We issue the executed TTB F 5200.29 ready to file.
I have more than one factory — do I need separate bonds? +
No — a manufacturer operating more than one factory may file a blanket bond on TTB F 5200.25 or 5200.26 instead of separate bonds for each factory. Tell us your factories and we will issue the right form.
Is there a credit check? +
Not on standard amounts — the tobacco bond issues without a credit pull for typical penal sums. Larger amounts may get a quick soft-pull review, which never affects your credit score and informs approval, not price.
Related bonds

Other New York bonds.

Tobacco bond, issued today.

Five-minute application, flat 3%, $275 minimum. Enter the penal sum TTB requires and file the same day.

Your premium @ 3%$600
Apply now →